Today marks the beginning of the California Housing Finance Agency's 40-year mortgage featuring a 5.75% interest rate.  This loan is targeted at California home buyers who face the highest home prices in the nation.

The new CalHFA loan provides low and moderate income residents who are first time buyers with the ability to reduce their payments by up to $150 per month on an average Sacramento area home.  While many low and moderate income residents are effectively priced out of the market due to the incredible escalation of home prices in California, a family of three or more with an annual income below $89,740 can qualify for a home as high as $429,620. 

Though extending the loan period does add to the final costs of the home, the new 40-year fixed interest rate loan puts the American Dream of home ownership well within reach for many more Californians.